Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017

Cases where assignment of lease treated as grant of lease E+W

22 (1) This paragraph applies where the grant of a lease is relieved from tax by virtue of any of the provisions specified in sub-paragraph (4). E+W

(2) The first assignment of the lease that is not relieved from tax by virtue of any of the provisions specified in sub-paragraph (4), and in relation to which the assignee does not acquire the lease as a bare trustee of the assignor, is treated for the purposes of this Act as if it were the grant of a lease by the assignor—

(a) for a term equal to the unexpired term of the lease referred to in sub-paragraph (1), and

(b) on the same terms as those on which the assignee holds the lease after the assignment.

(3) Sub-paragraph (2) does not apply where an assignment of a lease, but for the application of that sub-paragraph, would be relieved from tax by virtue of Schedule 11 (alternative finance investment bonds).

(4) The provisions are—

(a) Schedule 9 (sale and leaseback relief);

(b) paragraphs 13 and 15 of Schedule 11 (alternative finance investment bond relief);

(c) Schedule 16 (group relief);

(d) Schedule 17 (reconstruction and acquisition relief);

(e) Schedule 18 (charities relief);

(f) paragraph 1 of Schedule 20 (relief for certain acquisitions involving public bodies);

[F1 (g) Schedule 21A (relief for special tax sites).]

(5) This paragraph does not apply where the relief in question is group relief, reconstruction or acquisition relief [F2 , charities relief or relief for special tax sites] and is withdrawn as a result of a disqualifying event occurring before the effective date of the assignment.

(6) For the purposes of sub-paragraph (5), “"disqualifying event”” means—

(a) in relation to the withdrawal of group relief, the event falling within paragraph 8(2)(a) of Schedule 16 (buyer ceasing to be a member of the same group as the seller) as read with paragraph 9 of that Schedule;

(b) in relation to the withdrawal of reconstruction or acquisition relief, the change of control of the acquiring company mentioned in paragraph 5(2) of Schedule 17 or, as the case may be, the event mentioned in paragraph 7(2) or (3) of that Schedule;

(c) in relation to the withdrawal of charities relief, a disqualifying event as defined in paragraph 2(4) or 5(2)(b) of Schedule 18;

[F3 (d) in relation to the withdrawal of relief for special tax sites under Schedule 21A, the last day in the control period on which the qualifying land ceases to be used exclusively in a qualifying manner in circumstances where the exceptions in sub-paragraphs (3), (4) and (5) of paragraph 10 of that Schedule do not apply.]

[F4 (7) In sub-paragraph (6)(d), “control period”, “qualifying land” and “qualifying manner” are to be interpreted in accordance with Schedule 21A.]

Textual Amendments

F1 Sch. 6 para. 22(4)(g) inserted (26.11.2024) by The Land Transaction Tax (Relief for Special Tax Sites) (Wales) Regulations 2024 (S.I. 2024/1193), regs. 1(2), 2(4)(a)

F2 Words in Sch. 6 para. 22(5) substituted (26.11.2024) by The Land Transaction Tax (Relief for Special Tax Sites) (Wales) Regulations 2024 (S.I. 2024/1193), regs. 1(2), 2(4)(b)

F3 Sch. 6 para. 22(6)(d) inserted (26.11.2024) by The Land Transaction Tax (Relief for Special Tax Sites) (Wales) Regulations 2024 (S.I. 2024/1193), regs. 1(2), 2(4)(c)

F4 Sch. 6 para. 22(7) inserted (26.11.2024) by The Land Transaction Tax (Relief for Special Tax Sites) (Wales) Regulations 2024 (S.I. 2024/1193), regs. 1(2), 2(4)(d)

Modifications etc. (not altering text)

C1 Sch. 6 para. 22 applied in part (with modifications) (1.4.2018) by The Land Transaction Tax (Transitional Provisions) (Wales) Regulations 2018 (S.I. 2018/126), regs. 1(2), 10

Commencement Information

I1 Sch. 6 para. 22 in force at 1.4.2018 by S.I. 2018/34, art. 3